Glencore plc
12 February 2024
Baar, Switzerland
Koniambo Nickel to Transition to Care and
Maintenance
The shareholders of Koniambo Nickel SAS (KNS) -
a joint venture between Société Minière du Sud Pacifique SA (SMSP)
and Glencore plc - have made the decision to transition KNS into
care and maintenance.
Glencore will fund the operation according to an
agreed budget as it begins an orderly transition to a state of care
and maintenance. The furnaces will remain hot for six months, and
the KNS team will support the critical activities required to
maintain the integrity of the asset and keep the site
secure.
Glencore will shortly initiate a process to
identify a potential new industrial partner for KNS.
All local KNS employees will be retained for a
period of six months to aid in the transition.
This decision follows several months of
extensive discussions and negotiations with relevant government and
other key stakeholders. Even with the French government's
proposed assistance, high operating costs and current very weak
nickel market conditions means KNS remains an unprofitable
operation.
Glencore has been a responsible custodian of KNS
since acquiring the operation as part of the Xstrata transaction in
2013. More than US$4 billion has been funded by Glencore
since 2013, and a total of US$9 billion since project inception.
For over ten years, Glencore has been the primary funder of KNS
without ever realising a profit. KNS has contributed c.US$5.6
billion in economic benefits to New Caledonia since 2012 from
construction (US$1.7 billion) and operations (US$3.9 billion),
including US$3.0 billion spent on goods and services and the
payment of US$950 million in local salaries.
Glencore is appreciative of the French
government's efforts to revitalize and rescue the nickel industry
in New Caledonia, however, even with the proposed assistance, KNS
remains an unsustainable operation and Glencore cannot justify
continuing to fund losses to the detriment of its
shareholders.
For further information please
contact:
Investors
|
Martin Fewings
|
t: +41 41 709 28 80
|
m: +41 79 737 56 42
|
martin.fewings@glencore.com
|
Media
|
Charles Watenphul
|
t: +41 41 709 24 62
|
m: +41 79 904 33 20
|
charles.watenphul@glencore.com
|
www.glencore.com
Glencore LEI:
2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world's largest global
diversified natural resource companies and a major producer and
marketer of more than 60 commodities that advance everyday life.
Through a network of assets, customers and suppliers that spans the
globe, we produce, process, recycle, source, market and distribute
the commodities that support decarbonisation while meeting the
energy needs of today.
With around 140,000 employees and contractors
and a strong footprint in over 35 countries in both established and
emerging regions for natural resources, our marketing and
industrial activities are supported by a global network of more
than 40 offices.
Glencore's customers are industrial consumers,
such as those in the automotive, steel, power generation, battery
manufacturing and oil sectors. We also provide financing, logistics
and other services to producers and consumers of
commodities.
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Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active
participant in the Extractive Industries Transparency
Initiative.
We recognise our responsibility to contribute to
the global effort to achieve the goals of the Paris Agreement by
decarbonising our own operational footprint. We believe that we
should take a holistic approach and have considered our commitment
through the lens of our global industrial emissions. Against a 2019
baseline, we are committed to reducing our Scope 1, 2 and 3
industrial emissions by 15% by the end of 2026, 50% by the end of
2035 and we have an ambition to achieve net zero industrial
emissions by the end of 2050. For more detail see our 2022 Climate
Report on the publication page of our website at glencore.com/publications.
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